The Karachi Stock Exchange (Guarantee) Limited’s amendment in the pre-requisite / eligibility criteria for inclusion of companies in KSE- 30 KMI- 30 Indices

The Karachi Stock Exchange (Guarantee) Limited’s amendment in the pre-requisite / eligibility criteria for inclusion of companies in KSE- 30 KMI- 30 Indices

Karachi: It is hereby informed to all concerned that the Governing Board of Directors of the Exchange on the recommendations of the Companies Affairs / Corporate

Governance Committee have decided to amend the pre-requisite / eligibility criteria for inclusion of companies in KSE-30 and KMI-30 Indices as under:

1. KSE-30 Index

The Pre-Requisite No. 4.4 has been amended to read as “The company must have an operational track record of at least one financial year

2. KMI-30 Index

One of the Eligibility Criteria under 1.2.1 has been amended to read as “The Company must have an operational track record of at least one financial year.

The existing and the revised Pre-Requisite / Eligibility Criteria duly highlighting the amendments are attached for information.

Please be informed that the Pre-Requisite / Eligibility Criteria have been amended in view of the fact that the index be broad-based and should reflect the market performance, since the primary objective of the indices is to have benchmark by which the stock performance can be compared over a period of time and therefore exclusion of companies simply on minor delays in compliance of the requirements of the Listing Regulations does not serve the objective and purpose of the constitution of a true market representative index. In situation of any default, action against the companies be taken under the respective Regulations through explanation and imposition of penalty for delay in compliance of the Regulations.

Comparative Review of The Existing/ Revised Pre-Requisite of KSE-30 Index

KSE-30 Index:

Existing Prerequisite

4. Pre Requisites to Qualify For Inclusion in KSE-30 Index

4.1 The Company which is on the Defaulters’ Segment / Non-Compliant Segment and/or its trading is suspended, declared Non-Tradable (i.e. NT) in preceding 6 months from the date of recomposition shall not be considered for inclusion in KSE-30 Index;

4.2 The Company will be eligible for KSE-30 Index if its securities are available in the Central Depository System:

4.3The Company should have a formal listing history of at least two months on KSE;

4.4 The company must have an operational track record of at least one financial year and it should not be in default(s) of the Listing Regulations:

4.5 The Company should have minimum free-float shares of 5% of total outstanding shares;

4.6 The Company will be eligible For KSE-30 Index if its securities are traded for 75% of the total trading days;

4.7 The Open-End and Closed-End Mutual Funds will not be eligible for inclusion in the KSE-30 Index;

Revised Prerequisite

4. Pre- Requisites to Qualify For Inclusion in KSE-30 Index

4.1 The Company which is on the Defaulters’ Segment / Non-Compliant Segment and/or its trading is suspended, declared Non-Tradable (i.e. NT) in preceding 6 months from the date of recomposition shall not be considered for inclusion in KSE-30 Index;
4.2 The Company will be eligible for KSE-30 Index if its securities are available in the Central Depository System:

4.3 The Company should have a formal listing history of at least two months on KSE;

4.4 The company must have an operational track record of at least one financial year.

4.5 The Company should have minimum free-float shares of 5% of total outstanding shares;

4.6 The Company will be eligible For KSE-30 Index if its securities are traded for 75% of the total trading days;

4.7 The Open-End and Closed-End Mutual Funds will not be eligible for inclusion in the KSE-30 Index;

Comparative Review of the Existing/ Revised Eligibility Criteria of KMI-30 Index

Existing Eligibility Criteria

1.2 Eligibility Criteria

1.2.1 Technical Screening Filters

The Company which is on the Defaulters’ Counter and/or its trading is suspended, declared Non-Tradable (i.e. NT) in preceding 6 months from the date of re-composition shall not be considered for inclusion in KMI-30 Index;
The Company will be eligible for KMI-30 Index if its securities are available in the Central Depository System;

The Company should have a formal listing history of at least two months on KSE;

The company must have an operational track record of at least one financial year and it should not be in default(s) of the Listing Regulations:

The Company should have minimum free- float shares of 5% of total outstanding shares;

The Company will be eligible for KMI-30Index if its securities are traded for 75% of the total trading days;

Mutual Funds (both Open-Ended and Closed-Ended) are ineligible for inclusion in the KMI-30 Index;

Revised Eligibility Criteria

1.2 Eligibility Criteria

1.2.1 Technical Screening Filters

The Company which is on the Defaulters’ Counter and/or its trading is suspended, declared Non-Tradable (i.e. NT) in preceding 6 months from the date of re-composition shall not be considered for inclusion in KMI-30 Index;
The Company will be eligible for KMI-30 Index if its securities are available in the Central Depository System;

The Company should have a formal listing history of at least two months on KSE;

The company must have an operational track record of at least one financial year.

The Company should have minimum free- float shares of 5% of total outstanding shares;

The Company will be eligible for KMI-30Index if its securities are traded for 75% of the total trading days;

Mutual Funds (both Open-Ended and Closed-Ended) are ineligible for inclusion in the KMI-30 Index;

For more information, contact:
Karachi Stock Exchange
Tel: +9221 111 001 122
Fax: +9221 3241 0825, +9221 3241 5136
Email: info@kse.com.pk
Web: www.kse.com.pk

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